General FSA Questions

Who is eligible to participate in a Flexible Spending Account (FSA)?
The Flexible Spending Accounts (Dependent Care Spending Account and Health Care Spending Account) are provided as options for all eligible full-time (90%-100%) and part-time (50%-89.9%) executive management, faculty, academic and support staff. Employees have 60 days from the day of initial appointment/hiring or eligibility to sign-up for Flexible Spending Accounts (FSA). Employees that do not enroll by the enrollment deadline will not be eligible for the tax savings opportunities until the next FSA open enrollment unless they have a qualifying life event.

The program is effective the first day of the month following enrollment or changes. For example, an employee is hired 7/15 and enrolls in the Dependent Care Spending Account the same day. The program goes into effect 8/1. Only eligible expenses occurring 8/1 or after may be submitted for reimbursement.

Do I have to participate in both accounts, or can I participate in just one?
These two accounts are separate plans with unique eligibility requirements. The HCSA and DCSA plans are available to all benefit eligible employees. If eligible, you may choose to enroll in both plans or just one.

Will a FSA work for me?
To help you decide if a FSA will work for you complete the following worksheets:

How do I enroll in FSA?
Participation in FSA is completely voluntary. Annual open enrollment occurs in the fall. When enrolling, you must state the amount of money you wish to have subtracted from your gross pay for the plan (calendar) year. The amount you choose will be divided equally by the number of times you are paid during the plan (calendar) year. This amount will be reduced from your pay and deposited into your FSA each pay period.

Once you have determined your election needs, you may enroll by accessing the EBS Portal.  Enter your MSU NetID and password. Click on "Employee Self-Service," "Benefits" and then "Enrollment Services".  For enrollment assistance, you may contact MSU Human Resources Benefits at 517-353-4434 or toll-free at 800-353-4434. Employees that do not enroll by the enrollment deadline will not be eligible for the tax savings opportunities until the next calendar year unless they have a qualifying life event. You may begin, stop or change the amount of your spending account contribution if you have a qualifying life change event such as:

If you are on a leave of absence during the annual FSA open enrollment period, you are eligible to enroll in a FSA program within 30 days of your return from leave. New employees must enroll within 60 days of their employment date. Flexible Spending Accounts become effective January 1 each year for those who enroll during FSA Open Enrollment, and the first day of the month following sign-up as a new employee or as a result of a qualifying event.

How do I check the status of my Flexible Spending Account?
You may call MSU's FSA Plan Administrator or you may view your FSA status via the EBS Portal. Enter your MSU NetID and password. Click on "Employee Self-Service," then "Flexible Spending Account Status".

Why do amounts that are unused in my account at year-end have to be forfeited?
The Internal Revenue Service (IRS) requires that these unused dollars be forfeited as a condition of offering spending accounts. Since the money is tax-free, the IRS views your election commitment as just that...a commitment to fully fund your account for your entire plan (calendar Jan-Dec) year election. This is true whether or not you actually use the money. Keep in mind that it is not MSU's or the IRS's intention or wish that you forfeit money. We want all employees to fully take advantage of this valuable benefit and to use all the money that's deposited to your account(s). So plan conservatively.

Will participation in a FSA affect my other benefits?
Participation in a FSA program may affect your future Social Security benefits because contributions to a FSA reduce your taxable income, which reduces your Social Security taxes. If your taxable income is below the maximum wage taxed by Social Security, you could reduce your future Social Security benefits. For most people this reduction would be minimal - only a few dollars per month. If you invest your tax savings as a result of the FSA, it is projected that your tax savings could make up for any reductions in Social Security benefits.

Where can I get more information?
Please direct questions about your MSU Flexible Spending Account to:

Meritain Health
P.O. Box 30111
Lansing, MI 48909
Fax: 517-381-6600
Local: 517-349-7010
Toll-free: 800-748-0003

Can I change the amount of money I put into my Flexible Spending Accounts?
Once you enroll in a FSA, your participation must continue unchanged until the end of the plan (calendar) year unless you have a qualifying life event. Qualifying life events include marriage, divorce, death, birth/adoption, or a change in employment. However, the adjustment in your election must be consistent with the change in status, e.g., if your employment status is reduced then so would the amount of money you put into your account. If you have a qualifying life event during the plan (calendar Jan-Dec) year, you may make changes to this benefit through the EBS Portal within 30 days of the life event. Any changes to the FSA become effective the first day of the month following the change(s). Should you have questions on your status change, you may contact MSU's FSA Plan Administrator or MSU Human Resources Benefits at 517-353-4434 (toll-free 800-353-4434).

Who is Meritain Health?
Meritain Health is located in Okemos and is a nationally respected benefits management company with experience administering Flexible Spending Accounts for large employers, including other universities. Meritain Health will be processing all claims, answering your questions, and helping you in any way they can. They can be reached by calling locally 517-349-7010 or toll-free 800-748-0003. Fax (517-381-6600) or mail all inquiries and claims to P.O. Box 30111, Lansing, MI 48909.

What happens to unused monies in my account if I retire or terminate?
The IRS requires that any unused monies left in your account must be forfeited...so plan conservatively. Certainly, if you plan on leaving MSU for any reason, you may wish to reconsider your choice to participate. If, however, you choose to participate and leave prior to year-end, then you can continue to have access to your account deposits, by continuing to submit claims incurred (with a date of service) prior to your employment termination date. You have until the end of the plan year to do so. Additionally, if you participate in the Health Care Spending Account, you may be eligible to continue your participation under COBRA. COBRA allows you to continue to make after-tax contributions to your account, and also to submit reimbursement requests for claims incurred after your employment has ended (during your COBRA period of coverage).

What happens if I take an unpaid leave of absence?
Keep in mind that an unpaid leave of absence is considered by the IRS and MSU as a family or employment change in status. Contributions will cease at the onset of your leave. Events such as a leave of absence may allow you to change your elections in a manner consistent with the reason for the leave upon your return.

Upon return from leave or layoff, you will automatically be re-enrolled into your HCSA if you return within the same calendar year. The remainder of your election will be divided equally over the remaining calendar year pay periods. As a result of the re-enrollment you may submit eligible claims that you incurred during your absence.

Re-enrollment is not automatic in the following situation: if your return from an unpaid leave of absence occurs after 12/31 you are required to re-enroll in the HCSA program within 31 days of your return. Your Flexible Spending Account will become effective the first day of the month following your re-enrollment.

If my spouse, who doesn't work at MSU, loses his\her job, is that considered a life event?
Yes, if your spouse loses their job, it is considered a qualifying life event and you may make changes to your FSA account(s).

Do I have to re-enroll during every open enrollment period?
The IRS requires that employees make new elections for each and every plan year. It is important to review your expenses each year to make sure that your election is appropriate, based on the actual expenses you expect to have. Please contact MSU Human Resources Benefits at 517-353-4434 or toll-free 800-353-4434 or MSU's FSA Plan Administrator.

How do I receive reimbursement?
To receive reimbursement from your account, review the Reimbursement Request Instructions. You have until April 30 to submit reimbursement requests for the previous year's expenses.

Please note: For DCSA if your reimbursement request exceeds your account balance, you will be reimbursed up to the amount in your account. The remainder will be reimbursed to you when more funds are available in your account.

How often does Meritain Health process reimbursements?
Meritain Health will process your reimbursements daily. Reimbursements will be processed within three (3) business days and the check will be sent on the fourth (4th) business day.

Why do I need to contact a tax advisor?
The benefit derived from participation in the Health Care or Dependent Care Spending Accounts is tax savings. With regard to your taxes, they are your responsibility, and involve much more than simply multiplying a tax rate times your wages. MSU Human Resources Benefits and MSU's FSA Plan Administrator are not staffed to properly handle personal tax questions. In order to maximize your tax savings from these accounts, and to ensure that they fit with your personal income tax situation, you are encouraged to consult with your tax advisor if you have specific questions or concerns prior to enrollment.

How frequently will I receive account statements?
In addition to your reimbursement check stubs from MSU's FSA Plan Administrator, which reflect all account activity and balances, you will receive quarterly statements during the course of the plan year. You may call MSU's FSA Plan Administrator at any time for an up-to-the minute account activity summary via Interactive Voice Response (IVR) System or via the Web.

My spouse and I both are employed by MSU, can we have separate FSAs?
Yes. The maximum household benefit for HCSA is $10,000 or $5,000 each. The maximum benefit for DCSA is $5,000 or $2,500 each. You are encouraged to speak to a tax advisor to determine the best situation for you prior to enrolling in the program.